Contribution of SMEs on Poverty Alleviation in Zanzibar: A Case of Small Scale Salt Production in Pemba Eastern Coast

Faki, Addi Juma (2013) Contribution of SMEs on Poverty Alleviation in Zanzibar: A Case of Small Scale Salt Production in Pemba Eastern Coast. Masters thesis, The Open University of Tanzania.

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Abstract

Zanzibar Poverty Reduction policy framework vested in SMEs development related strategies, among other sectors. While the sector has shown some promising results in some countries in one hand, on the other hand it doesn’t make much difference in other countries. This descriptive case study conducted in Pemba Eastern coast establishes the contribution of SMEs to Poverty Reduction in Zanzibar taking a case of salt industry in Pemba Island. The results are of significant importance to poverty reduction practitioners to be more focus in designing pro-poor policies and programs. While data drown from individuals with great state in salt production Simple Random Sampling (SRS) was applied in sample selection. The study revealed that; the SMEs sub sector have the potential to utilize idle labour force and generate income to the incumbents including owners, employees and labourers. On the other hand it identified that, SMEs is still in infant stage and is confronting with a number reinforcing problems which hinder their effectiveness in poverty reduction contribution efforts. Although the study find that the majority of SMEs incumbents under study managed to cut across both the Zanzibar food and basic need poverty lines, there is no much to be praised and awarded credit for the matter. Similarly, there is a move towards innovative SMEs, but the use of R&D and application ICT and together its impact HRD is still at minimum. Hence, based on the current status of SMEs in Zanzibar, it can be concluded that, the sector has not yet exploited to the maximum and little convincing in its contribution to poverty reduction. To improve the sector and its contribution to Poverty alleviation, financing, human resources, marketing, R&D and technology and cooperative governance aspects should be properly and effectively addressed.

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